TY - UNPB
T1 - Identifying Berlin's land value map using Adaptive Weights Smoothing
AU - Kolbe, Jens
AU - Schulz, Rainer
AU - Wersing, Martin
AU - Werwatz, Axel
PY - 2015
Y1 - 2015
N2 - We use Adaptive Weights Smoothing (AWS) of Polzehl and Spokoiny (2000, 2003, 2006) to estimate a map of land values for Berlin, Germany. Our data are prices of undeveloped land that was transacted between 1996-2009. Even though the observed land price is an indicator of the respective land value, it is influenced by transaction noise. The iterative AWS applies piecewise constant regression to reduce this noise and tests at each location for constancy at the margin. If not rejected, further observations are included in the local regres- sion. The estimated land value map conforms overall well with expert-based land values. Our application suggests that the transparent AWS could prove a useful tool for researchers and real estate practitioners alike.
AB - We use Adaptive Weights Smoothing (AWS) of Polzehl and Spokoiny (2000, 2003, 2006) to estimate a map of land values for Berlin, Germany. Our data are prices of undeveloped land that was transacted between 1996-2009. Even though the observed land price is an indicator of the respective land value, it is influenced by transaction noise. The iterative AWS applies piecewise constant regression to reduce this noise and tests at each location for constancy at the margin. If not rejected, further observations are included in the local regres- sion. The estimated land value map conforms overall well with expert-based land values. Our application suggests that the transparent AWS could prove a useful tool for researchers and real estate practitioners alike.
UR - http://sfb649.wiwi.hu-berlin.de/papers/pdf/SFB649DP2015-003.pdf
M3 - Discussion paper
T3 - SFB 649 Discussion paper
BT - Identifying Berlin's land value map using Adaptive Weights Smoothing
PB - Humboldt-Universität zu Berlin
CY - Berlin
ER -